Series 22: 1.2.4.2. Rights And Warrants

1.2.4.2.  Rights and Warrants

When a corporation wishes to raise money by offering a new issue of common stock, existing shareholders may have the right to maintain their current ownership share by purchasing a proportionate amount of the new issue before it is offered to the public. This is a stockholder’s subscription right. A rights offering, as it is known, entitles stockholders to buy these proportionate shares at a discount from the offering price. The rights themselves are freely transferable, allowing the owner to